Question 5

In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?

Answer

The World Bank used the average income, i.e. per capita income as the main criterion used by the World Bank in classifying different countries. Countries with per capita income of $10066 and above in 2004 as published by the World Bank according to the World Development Report 2006, are called developed countries. On the other hand, low-income countries are countries with per capita income of $825 or less. Countries based on HDI are compared by the UNDP on
the basis of educational levels of the people, their health status and based on average income. It is better to use Human Development Index as a wider indicator in which per capital income, health and education are also included.

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